If the government okays tariff hike proposal, Mumbai-Pune flight will cost Rs10,500 one way, and Mumbai-Kolkata Rs40,000.
If you thought domestic air travel had already touched near unaffordable levels, here’s some really bad news: it can get worse.
The airlines have submitted a proposal for fare hikes to the Directorate General of Civil Aviation (DGCA). If it is accepted, then air travel may soon be out of reach for the middle class flyer. The airlines, however, may not have their way since the DGCA is unlikely to give its nod. Sources said on Thursday the civil aviation regulator is likely to shoot down the proposed price bands and may ask the airlines to rework them keeping passengers’s interest in mind.
Domestic carriers, buoyed by the rising demand in recent months, have suggested fares based on the distance of travel rather than the dynamic fare structure that they have been following till now, where fares move up as planes fill up.
As per the proposal, one-way fares for distance less than 750 kilometre (km) would be Rs10,500 and Rs40,000 for more than 1,400 km. IndiGo, SpiceJet, Jet Airways, JetLite, GoAir and Air India (Domestic) have given their proposals on this basis. Kingfisher has been asked by the DGCA to rework its proposal as it has submitted fares on the basis of two slabs.
Airfares quoted by airlines are reportedly in four distance slabs: of less than 750 km, 750-1,000 km, 1,000-1,400 km and beyond 1,400 km. The fares proposed on the 750-1,000 km slab ranged between Rs14,550 and Rs19,500, while it was between Rs17,000 and Rs25,000 for the next slab.
The high distance slab had proposed fares ranging between Rs22,000 and Rs40,000. This means a one-way air ticket between Delhi and Bangalore would be Rs40,000 while a Chennai-Coimbatore fare would be Rs10,500.
Nasim Zaidi, civil aviation secretary, told DNA that the airline regulatory body was examining the proposal, but did not comment on whether it would be accepted or declined. “We had asked for the information (on fares) and it is being examined,” he said.
Civil aviation minister Praful Patel reportedly reiterated that the airlines would not be allowed to charge exorbitantly. “DGCA will not allow any predatory or exorbitant pricing... If there is something lacking we will make necessary correction. We will not allow airlines to charge exorbitantly. We will not let them take advantage of a situation,” he told a local wire agency.
In order to rein in soaring fares, the civil aviation ministry had issued a circular to airlines to provide information on “route-wise tariff across their network in the various fare categories.” The ministry’s move was instigated by the 25% jump in air ticket after the festive season in November.
The government notice sent out asked the airlines to furnish details of fares to the DGCA at the beginning of every month and stick to it. It is in response to this directive that airlines had given the fare structure to the DGCA on Wednesday.
Domestic carriers have often been accused of cartelisation to keep fares up. Airlines have refuted these allegations.
— With PTI inputs
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